Limited liability companies (LLCs) offer personal liability protection and other benefits, but maintaining these benefits requires ongoing work. Failing to fulfill certain obligations can lead to a loss of legal protections. Learn how to maintain your LLC’s legal status by following key compliance steps.
File annual reports and pay fees
In Indiana, LLCs must file biennial reports and pay a fee to stay in good standing. These reports include basic information about the business, such as its address and registered agent. The filing deadline is every two years by the end of the anniversary month of the LLC’s formation. Business owners must keep track of these requirements to avoid penalties or losing their LLC status.
Keep accurate records and comply with regulations
Maintaining proper business records is essential to keep an LLC’s legal status intact. Accurate financial records, meeting minutes, and resolutions help demonstrate that the LLC operates as a separate entity from its members. LLCs must also comply with other local, state, and federal regulations that apply to their industry, including licensing and permits.
Maintain a registered agent
An LLC must have a registered agent who can receive legal documents and official notices on behalf of the company. The registered agent must have a physical address in the state where the LLC is formed. Business owners must ensure that the registered agent’s information is current, as failing to do so may lead to the loss of good standing.
Separate personal and business finances
To maintain limited liability protection, LLC members must keep their personal and business finances separate. This means opening a dedicated business bank account, using it for all business transactions, and avoiding using company funds for personal expenses. Failing to separate finances could lead to “piercing the corporate veil,” putting personal assets at risk.
Keep your LLC in good standing by staying proactive and diligent. Meeting these ongoing requirements helps protect your business and its benefits for years to come.
